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Crypto plummets as Binance pauses Bitcoin withdrawals and Celsius stops redemptions

Binance
Binance has been targeted by both the Commodity Futures Trading Commission and the Department of Justice in recent months for perceived illegal behaviour.


Major cryptocurrencies plunged on Monday after Binance halted Bitcoin withdrawals and Celsius suspended all redemptions.

Bitcoin dropped over 18% while ether fell more than 20% on Monday afternoon after Binance , the world’s largest crypto exchange, suspended Bitcoin withdrawals. The suspension came after crypto lender Celsius announced it would halt withdrawals, swaps, and transfers between accounts. 

The news fuelled a sell-off in the already turbulent crypto markets. Bitcoin tumbled to around $23,052, its lowest price since December 2020, while ether fell to about $1212.

Bitcoin and ether’s current prices are a far cry from the dizzying peaks both reached in November last year, when Bitcoin was at its highest of around $68,990 and ether was at its peak of about $4864. 

A statement from Celsius said the pause was, “due to extreme market conditions.”

“We are taking this necessary action for the benefit of our entire community in order to stabilize liquidity and operations while we take steps to preserve and protect assets,” Celsius said.

Binance blamed the suspension on an earlier batch of transactions getting stuck and causing a backlog of Bitcoin network withdrawals.

“Binance will reopen withdrawals on the Bitcoin (BTC) network once our withdrawal system becomes stable, and we will notify users in a further announcement,” a statement on the company’s website said. 

The crypto market has been experiencing a severe rout. Investors have been cautious about crypto as soaring global inflation and recession fears sparked a scramble away from risky assets to steadier investments. The collapse of tokens Terra and Luna last month also spurred a sharp sell-off in the crypto market

The value of the global crypto market fell below $1 trillion on Monday for the first time since early 2021, dropping over 15% to around $956 billion, according to CoinMarketCap. The market cap of crypto was about $3 trillion in November last year.